- Canadian Apartment Properties Real Estate Investment Trust (CAR.UN)
- Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM)
Q: I hold BAM as an income stock and also CAR.UN, both in a TFSA. Going forward, I am considering combining them into either BAM or CAR.UN. (And I also hold DIR.UN, a larger position than CAR.UN). I know 5iR likes diversification, however the family has a home and a cottage. If I combine them, what would you suggest as the one to hold, BAM or CAR.UN??? .....Thanks....Tom
5i Research Answer:
Both BAM and CAR.UN could do well in a declining interest rate environment. If we HAVE TO combine into one holding, we would side with BAM, we think BAM is a really high-quality, royalty-like business model that could grow dividends and compound earnings strongly over many years.